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Placed: 27.12.2018 12:59:41

Odessa keeps the high rating of investment attractiveness

IBI-Rating has affirmed the investment attractiveness rating of Odessa at the level invA + and the credit rating at the level uaA with “stable” outlook

National rating agency IBI-Rating informs on affirming the credit rating of Odessa city at uaA grade, keeping the «stable» outlook and the rating of investment attractiveness at invA+ grade.

Such rating grades represent the high investment attractiveness and strong ability of the city to pay off its financial commitments. The «stable» outlook, with the highest probability, implies immutability of the rating on the horizon for 12 months.

The affirmed ratings grade is due by maintaining the positive dynamics of key indicators of socio-economic development and budget, diversification of the city's economic complex by types of economic activity, and low level of concentration of revenues to the budget by major taxpayers, payments, development of service, communal, social and educational infrastructure. The impact of the negative factors on the city's financial capacity remains moderate, despite the introduction of a legal regime for the martial law in the Odesa region, the preservation of the difficult economic situation in the country and the continuation of the military conflict in eastern Ukraine. The rating grades are supported by the significance of the city as a regional center, low direct and consolidated debt load on the revenue side of the budget, a prolonged growth in the volume of revenues to the local budget by almost all major items. In addition, Odesa has a high level of budget security: the budget revenue (excluding transfers) per capita exceeds the average figures for local budgets and indicators of most Ukrainian cities. At the same time, the city needs to attract additional funding, including for the restoration of urban infrastructure and housing and communal services.

8 key indicators of Odesa city economy by the first half of 2018: 1. Revenues to the city budget in comparison with the first half of 2017 grew by 18.3% to UAH 5.4 billion, including tax revenues - by 19.3% to UAH 2.9 billion, non-tax revenues - by 33.4% to UAH 0.5 billion. 2. The city budget was executed with a surplus of UAH 361.4 million. The capital expenditures are directed from the city budget in the amount of UAH 818.4 million, which is in 7.3% more than in the same period of 2017. 3. The level of budget security was UAH 3.4 ths., which is in 17.1% higher than the national average. The city budget remains a donor budget, transferring to the state budget a reverse grant (UAH 116.2 million, against UAH 78.3 million for the corresponding period of 2017). 4. The volume of sales of industrial products against the corresponding period in 2017 increased by 8.6% - to UAH 13.2 billion. 5. Enterprises and organizations of the city have absorbed UAH 4.6 billion capital investments, which is in 17.2% more than in the year earlier. 6. 103 thousand square meters of housing were commissioned, which is one and a half times more than the corresponding figure in the country per capita; СЃompared to the first half of 2017, the volume of construction work performed increased by 86.9%. 7. Retail trade in absolute prices, against the first half of 2017, increased by 4.5% to UAH 16.3 billion, and in terms of per capita, it is in 2.2 times higher than the average for Ukraine. 8. The foreign trade turnover of goods against the first half of 2017 increased by 15.2% and amounted to USD 824.6 million.

Director of the municipal department of the IBI-Rating agency, Mr. Dmytro Zadesenets, has accented: «According to our opinion, the city administration pursues a balanced budget policy, which allows maintaining the balance of solvency and investment in the development of Odesa city».

«In the current difficult economic conditions, the affirming of the credit rating at the investment grade is an indicator of a stable position of Odesa city among other municipalities of Ukraine», - has commented the results of rating action Mrs. Svetlana N. Bedrega, Deputy Mayor, Director of financial department of Odesa City Council.

. In order to conduct the analytical research the materials obtained from Odesa city have been used, including: indicators of the social and economic development, statistical data, treasury statements, program materials, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.